The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1887-11-16
The South Penn.

The answers TO the bill of complaint of the
Pennsylvania Railroad Company against the
New York stockholders of the South Penn
viii be filed to-day Tuesday. These an
swers will show an amount of life and vigor
hardly expected from the recent inactivity
of the parties in interest
The New York stockholders have 81 .625,-
900 OF the entire sl5, 10000 capital stock of
the South Penn. The holders of one third
oi tl,is stock have already signed the reOr-
ginization contract recently entered into by
the South Penn stockholders, appointing live
trustees TO take charge of the property, aud
attend to the completion of the raad These
trustees are Dr. Hostetter. Henry Phipps
George F. Baer, franklin r. Gowan and
Francis l.. Stetson. Upward of 6o per cent
of the entire stock has been signed on the
side of the compromise, including the Van
derbilts. against whom the Pennsylvania
Railroad Company have filed their bill of
complaint.
A prominent member of the South Penn
syndicate on being interviewed, said This
last move of the Pennsylvania Railroad
Company, is the most asinine il ever made
After two courts in Pennsylvania have deci-
ded that the Pennsylvania Railroad cannot
buy the South Penn, either directly or ndi-
rectly. the Pennsylvania Railroad goes into
an adjoining state and in effect asks the Uni
ted States District Court To undo what the
Supreme Court of the state containing both
railroads has done
OF REAL BENEFIT TO THE SOUTH PENN
:" The present action of course, is against
certain individuals only and cannot effect
any action of the South Penn Rainlad Com
pany proper, nor any action of the Reor-
ganization Committee of five except incl
dentally Those interested. however look
with favor on the litigation. because its
effect will be to force the. Vande rbiits and ]
Pierrepont Morgan to proclaim their posi-
lion for the future publicly aud under oath
Whatever that position may be it is hardly
probable that when il is once taken it will
he deviated from in the future The action
of the Vanderbilts in singing the reorganiza-
. htpH w It3liIffttil~t agreement 1LilCdttN
rather clearly whot their position will be
indeed must be, when their answer is filed
in the Pennsylvania Railroad Company's
bill of complaint However. the 18th of
this month must see change in South Penn
matters. which will be better or worse.
Either will be better for the Stock kholders
and the general public than the present in
activity
II Vanderbilt was not for the delivery of
controlling interest in the South Penn line
alone. but for. the controlling interest in the
South Penn and Beech Greek line
The present value ofthe Beecl, Greek secur-
tiles Is now in the open market abut s4.5o0.-
900 more than the rate Al which Wm. H.
Vanderbilt undertook To sell the controlling
interest in the enterprise to Mr.. Roberts
Hence if the old bargain were carried out
the present owners of Beech Creek securities
would be compelled 10 submit to an immed-
late cash loss of about "a. 500000 for the
privilege af doing what our Supreme Court
has decided as an Illegal act, and for the
privilege of pleasing Mr.. George b Roberts
II such bargain was carried out, it would
be for sentiment and not from legal necess-
ity OF business accumen Any one who
thinks that average business men ot.the day
would pay SI,5oe,ooo for sentiment must be
u poet
From this You must see the deductions ]
make. That the Pennsylvania Railroad
Company cannot own the South Penn di-
rectly or indirectly; that II could not get
both the South Penn and Beecl, Creek roads
even il legally possible and that the present
owners of the South Penn must complete.
the line or lose absolutely the money alread
invested, s5,5oo.oo And that they don't
propose To do
II is admitted by counsel on both sides of
South Pennsylvania Railroad case that since
litigation in the matter began the Beech
Creek Railroad has undergone changes that
have lifted il beyond lis former position.
The present value Of the securities of the
company in The open market is placed at
about si,50ooco more than the rate at
which the late WiIiiam H Vanderbilt agreed
To sell controlling iulerest in the property
to the Northern Central Railway Company
George r Bear, of Reading, representing
the stock and bondhoIders of the South
Pennsylvania Railroad Company. states that
his answers 10 the suit of the Pennsylvania
Railroad Compony in the United States
Court ia New York city to restrain the ne
organization of the South Pennsylvania
Railroad viii probably be filed this week
He declares that there has been no delay in
filing these answers, as special time had
been set for il.